The strength of the U.S. economy doesn’t necessarily come from Wall Street or trading in global markets. According to the U.S. Small Business Administration (SBA), the bulk of the U.S. economy depends on the success of small and independently-owned companies. In Albuquerque, New Mexico, the state government runs a variety of programs to support and grow small businesses but admits that they need to do much more to help level the playing field between SMBs and large corporations.
According to the SBA, 99.7% of all U.S. companies are small or independently-owned businesses. Therefore, supporting the local community and buying from small businesses is the best way to ensure a growing economy on both the state and national levels. As state and federal governments understand this, they’ve provided specific programs such as the Section 179 Deduction. Under this program, small businesses can get a significant tax deduction when they purchase new office equipment and technologies in 2019.
Small Businesses are the Lifeblood of the Albuquerque Economy
There were roughly 154,000 small businesses in New Mexico that employ around 339,000 people around the state. From the latest stats and figures, about 68 cents of every dollar spent stays in the local economy. Supporting these businesses help keep New Mexicans employed so their families wouldn’t just survive but also thrive throughout the state.
To illustrate how important it is to support the local economy, the state government recently passed House Bill 79. This legislation created Small Business Saturday, an initiative that seeks to grow local spending in the state by making, the Saturday after Thanksgiving a tax-free day for consumers buying from neighborhood shops and retailers.
Six Benefits of Small Business in a Community like Albuquerque, New Mexico
Apart from the above, many other benefits come with choosing to support small businesses or independent companies. A vibrant local economy ensures more tax dollars for the government and leads to higher spending power in all sectors of the community. The more people spend locally, the greater the amount of money that stays in the state, leading to a prosperous economy where individuals can continue to make an honest living.
1. Enables Economic Development
Albuquerque small businesses will, in-turn, source supplies from other local companies, often after having long-standing and successful B2B (Business-to-Business) relationships between the organizations. If the company is sourcing material from another, out-of-state business, it can create opportunities for new businesses to enter the market and compete with suppliers. This leads to better services and products available to the residents of the community.
2. Supporting the Community and its Well-Being
Communities thrive when businesses prosper. The government receives more tax dollars to spend on localized initiatives, but it also puts money in peoples’ pockets and helps them build better lives for themselves. This once again leads to lower crime rates, more significant public health, and well-being, as well as improved community and individual engagement throughout the population.
3. Helping the Local Workforce
Creating jobs in the local economy is a priority for administrators and legislators in the state. Small Businesses make up the bulk of the employment numbers for Albuquerque’s economy. If a small business’s revenue grows, they can scale their operations (maybe even help them grow from a single location to multiple stores) and employ more people. This also leads to more skills in the workforce and job security for the breadwinners in local families.
4. Supporting People not Boards or Stakeholders
If people buy local, they’re supporting other members of their community instead of large, multinational corporations. Boards and Shareholders care only about turning a profit, whereas locally-owned organizations care about the well-being of their community. The more revenue an independent business receives, the more likely they are to invest in local community centers and programs for everyone’s benefit.
5. Keeps Businesses Authentic
Knowing the company a person chooses to support remains authentic and cares about their customers and workers alike is vital for a healthy economy. Small business owners understand that their reputations rely on their integrity and won’t exploit a relationship to drive up this quarter’s numbers.
6. Personalized Customer Service and Local Character
Local businesses tend to invest in long-term relationships with their customers. They’ll know the names of regular customers and add to the local character with years of faithful service to the community. Fostering a sense of inclusion and harmony in Albuquerque starts with buying from the locally owned mom-and-pop shops around the city.
Document Solutions Inc. Supports Local Communities as a Small Independently Owned Business
DSI helps the local economy grow and thrive with office technologies that improve efficiency and office productivity. As a responsible member of the community, DSI also supports a variety of programs in Albuquerque, New Mexico. Locally owned and operated means every dollar DSI makes stays in the local economy and goes towards improving the well-being of the entire Albuquerque community.
For Albuquerque’s small businesses looking to achieve greater efficiency and improve productivity, speak to one of our friendly, local agents at DSI today.